The benchmark third-month palm oil contract on the Bursa Malaysia Derivatives Exchange was up 0.8 percent at 2,182 ringgit ($537.70) a tonne at the midday break, its highest since March 4. It was headed for a fifth straight sessions of gains.

A bumper harvest last year in Malaysia and Indonesia, the world's major producers, had flushed the market with palm oil and dampened prices.

Stockpile concerns were further fanned, after the European Union announced plans to phase out use of palm oil in renewable transport fuel by 2030.